Deepak Kumar (Chartered Accoountant) (270 Points)
26 March 2013Assesse is a individual & held a land. That land has been acquired by loan taken from bank. No building has been built till date. That land has been given on rent. Now in what head will rental income be shown & can assesse calim interest paid to bank from rental income.
SAURABH NENE
(Chartered Accountant)
(226 Points)
Replied 26 March 2013
The income will be taxable under the head Income from Other Sources. Because, for income to be taxed under House Property, there has to be some kind of structure constructed.
Interest paid to the bank can be claimed as expenses for earning the income, if there is direct linkage between the loan obtained and purchase of land.
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